Q: Todays announcement with Microsoft boosted the BEPC share price about 8% so far, yet the improvement in BN share price is minimal Why? Is BN undervalued since it will clearly benefit from this contact between Microsoft and BEPC Is BN undervalued now? is it a good buying opportunity? I have a one-half position in BN and I'm thinking of boosting it
5i Research Answer:
Financial details were not disclosed, but analyst expect the cost of the MW to be built could reach $11B+. BN has seen some benefit, but it is nearly 4.5X as large as BEP so it will see less influence, even though it owns some of BEP. We think BN is a solid buy here.